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>> tax train keeps rolling along but spending cuts gets derailed, i'm david asman in for neil cavuto, now they have the republicans number. senate democrats push to delay automatic spending cuts, for

another three months, and the same time they demand tax hikes to be in go kind of short-term deal. sounds like groundhog day, and john lay feel said that would drive the economy into the ground, mattie, andoirk connel oh, connel are joining us thank you. we know what the democrats want. they want more responding and higher taxes anyway they can get it. the question is what the republicans are going to do about it. so far they have been snuckerred by the guys, what do you think that the republicans will do? >> i think they should tell them, you got what you wanted. what are you going to do? we knew and said you will get about 40 billion attract dollars by raising taxes on upper income, rich, whatever you want to call them. we still have a deficit over $1 trillion, they said they would run on this like fdr, and andrew jackson, what times are

bad, run against rich and bankers, if i was the republicans i would go on the offense say, last we're we brought in 1.2 trillion in income taxes, we still have deficits we could double income tax rates on every american and still run a deficit we have to do something with spending. >> i agree, but the question is how do you go on the defense? you don't go on offensive by immediately saying no, president has successfully painted them in a corner, no-sayres, that is all they say, you say yes, we' reform in september 2011, you came out with a report of your own how to revamp our text system, called plan for economic growth and deficit reduction, if that -- in that report, principles for tax reform, number one issue is lower tax rates, this is president talking

not republicans, the tax system should be simp flied and work for all americans and fewer bracket, so say, yes, we're with you mr. president, not simpson-bowles but your own words, we want tax simplification the way you said it. >> to go back to something else that president obama said, he of the one that proposed the sequester to begin with, this is not an idea that republicans came up with to cut spending to force democrats to get rid of the size of government, president came to the table in august of 2011, to say i have a great idea, let's do a sequester on domestic and defense. republicans should not say we're here to play ball, we're her but we're here to play balls on the terms you sit. they need to hold the president accountable on that, on tax reform side, president will have

a hard time getting buy in from all his democrats, you had head tax writer, a democrat saying, you know, i don't know if i want to give you my credit and deducts to take away the sequester, i want to use that for tax reforms, republicans and democrats have very different ideas of the tax reforms but the end of the day the guys on the hill do not want all tax credits they want to use to go to punting the sequester. david: let's leave politics aside, that sounds ridiculous, talk about what is good for the economy, it is good for the economy to have a more simplified tax code, it is true the tax changes in december made the tax code more volumous, more complicated it went in the wrong direction, why not say wement to simplify tax code, and we'll work with you on it.

we'll do what you said, get rid of the brackets and lower tax breaks, your words mr. president. >> that is right, what is the biggest problem to growing private sector in small business right now, the answer is certainty, if you simplify the tax code you will have certain certainty. that is the whole point, the problem is that president is ignoring the private sector, he is concerned mostly about public sector, biggest driver in our debt and deficit entitlement, the president is dancing around the issue. 10,000 people turn 65 every day, we cannot ignore the problem, what he is talking about, is ignoring the problem. until we fix it we'll run deficits and continue to mound to our debt. david: republicans are doing some dances too, like that

french apache dancing where you grab someone by the hair, and drag them. like the tea parties trying to drag them down, what is likely to happen? are they likely to fix up their act before the negotiations really begin so they come as united front against the president? >> david, that is a great question, but, to bet on this congress to fix their own act, i don't care if they are republicans or democrat, this is the most futile congress to record by a factor of two, the last 3 years by number of bills passed. they cannot agree on anything. but one thing they have in their favor good forward, you raise taxes on the rich, now that was political and that was a home run as far as our base, democrats. the next tax increase, will hurt. because they will be on the rest of americans, they will be very

unpopular, that is what republicans need to say, these are not necessary, we have to deal with entitlements and spending. david: but tax changes do not have to hurt if they go in the right direct, get rid of some of the deductions, the last tax thing, it was not a bill it was a thing, that was put together by republicans, and president, about a month ago, it has so money different little clauses and brackets there is one provision this benefits only one company. that is not what our tax bill is supposed to be. >> you know, the thing about -- has made taxes easy for all of us, we go to you know one of on-line tax things we fill out our tax form we're done, it does not seem hard to us, but look at the changes we look at what happened at beginning of this year, people get their paychecks with high are payroll tax, people realize, the effects of time coming out of college they do not have businessed to hire

them, they are feeling, it is not about talking about simplifying as about how having a tax code that is not punitive or not complex does not single out people are businesses, you know that is the blueprint we have from house republicans who not only had a plan to avert they is qwesteythe-- the sequesx hikes. david: based on the president wants we know he is stiff arming the republicans every step of the way, none of their attempts at compromise are working, if we get more tax increases, and no spending cuts, what is going to happen to the economy? >> the economy is going to be stagnant. right now cbo said growth 1.4%, we will continue to sputter along because we're ignores the private sector, the problem with tax code right now it more

messed up than college football's dws, we need to -- bcs we need to fix it. david: are you going to expand in anyway if taxes go up more? >> no, because, the people that pay highest corporate tax rate in the world are people like me, small and medium size business businesses. david: john you are very happy being in bermuda but you are going to miss out on a great snowstorm. >> great seeing you. david: coming up, the naked truth about people who are going bare naked. more people showing skin, giving two major companies a whole lot of problems. >> up next, check your e-mail at night. demand a check? why you could get overtime for spending time on your blackberry or cell phone. we'll tell you details. i work for one.

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>> who can make harness out of haywire, who planting time will finish his 40 hour week by tuesday noon. and put in another. david72 hours so god madea farm. david: that ma magnificent doj , showing how america used to be. a police sergeant said he was due overtime pay, but he was not on the clock. he was answering worker mails on his blackberry. sherri, is this a good way of the way work ethic used to be. >> it is right on target,

chicago police deputy should be ashamed. you have to look they want overtime for e-mails, which everyone is doing these days, we don't consider it all that extra. but same time we have outgoing secretary of defense leon panetta saying we're cutting pay of our troops in chicago there have been more homicide deaths in past 10 years because police have not been able to do what they could. so we'll cut the pay of our troops but we'll pay police officers more because they have to answer an e-mail? that is shameful. david: rick, we don't mean to pick on cops or teachers, teachers, there was a time when teachers, would work you know 40 hour weeks before the week was half through as well. i was a teacher in chicago, everyone brought their work home, the kids, parents they had your home phone number, they could call you. what happened to that? >> you have to be careful. i think as you said, not to pick too hard on the cops, a lot of

-- >> you did love that farming ad. >> i did. i have to tell you, i said, i wonder if paul harvey, the great voice, would feel the same way if he saw massive agriculture business we have today getting the government subsidies to profit. but setting that aside, i want to defin the cops a little bit. it is how they are paid, you talk about teachers, teachers are paid on a salary, typically if you paid on a salary it is all encompassing, it is part of the deal, that is not how chicago police are paid. so even. the city acknowledged, that much of this work does deserve overtime, their beef is they didn't put in for the overtime, now they are looking for it. david: but problem is larger than this one incident. this does demonstrate a trend,

how often do we get interns to work here that say, i hope you don't expects to us work on weekends and 5:00 that happens a lot. >> leaving chicago police out of this because there are a lot of men and women hard at work but this really speaks to a broader issue that is a nation of entitlement, everyone is looking for a hand out, no one is willing to put in that full day of hard work, they are looking to skirt the issues and take easy way out, and demand that above wage pay, and this speaks to a loss of work ethic. david: the bottom line, i do know people, rick and i were on a program, we were talking about food stamps there was a young person on, who said, i went on food stamps, she was making actual more than i was making when i was starting out here in new york city. and i ate tuna fish or a week.

>> i had an interesting diet when i was young as well, it is very different now, i don't think that i was talking on all chicago cops but. but i think they need to do in fair labor standard act have an exemption for police officers, i don't think this is that much extra work, they can solve the problem by having an e. tion thae-- exemption, have you a small handful of police officers that take advantage of how technology has changed they are finding a loophole. >> there are so many loopholes though all over, we find when states go broke, one thing that is making them go broker those loopholes that people take advantage of. >> you know the business i come from, had is intern driven, never, never and under line never once did i have an intern say, do i have to work weekends, they were always the first ones

in and last ones out the door. david: that is great for you, it does not happen for me. >> people in this country work really hard. david: the question is, when direction are we going? are withlacoochee heads in the direct -- we headed in a direct? >> think of those protesters on wall street saying i'm entitled to a middle class life style, a cell phone, and a house. david: which is sad, they didn't have a job. >> i think labor bosses are driving this type of attitude, it is no longer getting the job done where everyone getting paid for a fair day a work it is about getting what yo you can in some ways by bullying. david: don't you sense there is eye even fdr, and jfk said there was a danger with the entitlement mentally going too far. >> listen, you have to always be

careful. there are clearly people here, you heard me say it before, who take advantage. i don't like they do that but you have to be really careful, not to indict the entire society, most people in this country -- >> that wasn't the question. >> it is a handful of chicago cops. david: is seeping into the private sector. >> i edge to think i don't thin. >> i disagree, they demand a certain level they have not worked for, they want what their parents have without having to work for it, this is anna going problem maybe the interns that you dealt with have not brought that ta the table. david: let me ask sherri. >> you know, you look at any successful person, in this country, and they are not somebody who quitting work at 5:00, and overtime because you know, they have that magic time of the day. anand i think it is very bad thg in our society it is growing but

it does not mean it will be so pervasive we're not going to have innovators and generouses. -- jeanouses. david: that is why the dodge ad hit our hearts. >> we get it that is america that love. david: on that moment of agreement we'll leave it there, gas prices are soaring, the economy is shrinking, meet the senator with a plan to solve both problems coming right up.

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david: the sheets are giving us the shaft, saudi arabia keeping oil production at two years low, as they feet to keep oil prices high, pushing gas to record highs for this time of year, look at that, my next guest with a plan to create jobs and save

money we using less energy, and creating more of it, democratic senator mark warner of virginia, good to see you, how do you plan to double u.s. energy production, by the year, what is it? 2030? >> we're talking about energy productivity, which is another way too think about energy efficiency, a way to think about how to you make sure someone makes that improvement on their home, then gets it finished off the utility bill. can we create a energy saving -- for example. how do we make sure for example that if we could get our military to be more energy productive, efficient for every dollar oil goes up that costs navy an extra 30 million-dollars, navy itself, extra billion this year on increased oil prices because we're getting gouged by guys in the world. we can be come more energy

productive, that means more powergenration, but how do we use that power we have in a more efficient way. david: senator, the efficiencies are great, always to turn off a light not used, it could add up. i know that stuff adds up, but it is plain schedule compare -- minuscule compared to preliminary we have to dealing with natural gas, looking at north dakota, that is now, that is not pie in the sky, they think a 2% i unemployment rate, with 4 billion in barrels of oil in reserve and all natural gas with the shale, that is really future. >> david, that has to be part of the mick, i'm for the keystone pipeline, i for all of the above, oil, gas, nuclear 92 is the president? that is the question is he onboard as you're?

>> i think you will see yes, more movement on naturallal gas partially because of increases in fracking technology, and because of you know fact that there are more wells drilled in the last two years, but the notion that a piece, a major piece not some kind of you know back water, ought to be that natural gas we burn, that nuclear power we use it can used in a more energy efficient way. david: the question is, it has to be, whether the president is onboard? we don't know whether he is onboard with the ke keystone pipeline or with natural gas, that involves telling the epa, layoff some of these people, you can't put the screws on them, the wells are shutting down. >> david, we laid out today, we had today, the utility industry, environmental community, bes, we

have been working on this, my colleague was former governor pataki from new york, saying, how do you actual doe this. what policy changes do you need? we're not talking about a whole lot of additional federal resources, maybe a race to the top, but how do you make sure it say low quality. if a state wants to do this. david: i tell you one thing, you are not doing it with windmills, they are not the answer. it is something that is really working exponentially, the president by the way has to decide -- >> how about we look at fact whatever source, whether windmill or natural gas oil or nuclear. let's look at not generation slips but how we then use that source, in a more -- >> right, right, let me -- >> per unit. david: senator, the sierra club, a lot of other organization sent a letter to president challenges

him on the question of fracking, saying you have to choose between senator warner, a democrat who has been with you all the way and us pause we're against fracking, we're against expanding in natural gas, who do you think that president will choose, you or the sierra club? >> natural gas, has been and will be in terms to grow of an american generation. david: but who will the president choose? you are not answering? >> i think that president has shown, if you look at number of natural gas wells today, the growth in north dakota that did not happen 8 or fen year or 10 . david: most happened on land that was not federal land. but not on federal land. on private land, and god bless the private land owners they made a fortune, good them them and good for us, but the president has to choose, i hope he goes with you, senator mark

warner thank you very much. >> thank you, david. david: well massive media industry, keeping a democrat scandal in the dark, while it shines a bright light on every republican bump in the road, the hypocrisy alert is next.

david: the growing scanneddal that the mainstream media refuses to get a handle on.

new jersey senator menendez in a scandal that claims he solicited underage prostitutes that he denies, and using money to charter private jets, the story was cover the just 8 times on news network in past two weeks, when herman cain was getting coverage for his -- it was 99 times. the press is catching on to fact there were other scandals involved with menendez, but the sexual part is left out. whether republicans, get involved in any sexual accusation that is number one, right in the top of the paragraph.

>> yes. right. there is a comparison here that really tells you everything, mark foley, was caught up in some sexual stuff. that involved underage people. mark foley had his story broken on the eve of his elect cycle. mark foley resigned one day later. yet there were over 12 day period, there were 152 stories in a 12 day period. so, leading up to the election, even though he was gone, the media hammered and hammered and hammered. and he became an issue that elect year. fast forward, to last elect year, you had with menendez, story was broken on eve of a 2012 election, see length silend nothing, tf it was a op skit vi,

we're not going to cover this, if it is going to hurt the democrats. david: another example. this is closer to home to menendez, secret service, that came out, before accusations were proven, they have admitted to a lot of this covorting with pros tights in colombia, menendez spoke out about it very interesting what he said at the time. >> there have been some inside, secret service who say they have not been adequately funded for a lot of years, do you think that could aba problem? >> i don't think that is an excuse, your know your duty and obligation, you there are to protect the president, and represents the united states of america. you don't go solicit is prostitutes. david: and he said these people should either resign or be fired. now that -- that of an allegation then, now there an allegation about him, about which media says nothing. if it was serious enough, for

him to suggestion before the evidence was in they should be fired, isn't media obliged to mention it? >> absolutely. or, when you run 99 stories on her man cain ovees onherman cai. and not a single source, if that is justify, how can you not run a story on this guy menendez, when you have the sources to back it up. we're not saying he is guilty, but we're saying this is a news story, the fbi is raiding the home of his buddy in the dominican republic that is a news story, how can it not be covered. david: when menendez was criticizing secret service agents he said they ripped u.s. government, true -- represented the u.s. government, true, he

also represents a u.s. government, about to be cham chairman of senate for en relations committee that is a position that has world wide significant, he will be representing the united states all over the world. and if he -- if the allegations are true that is a bad representative. >> what do you think will be media's react instead of having the name menendez, his name were ruberubeo, or paul or cruz. david: we know, forget debbie does dallas, are we looking at debbie does twitter? the porn controversy that has critics say the social media site twitter is actually abor anti-social. ders

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jitters, the new video sharing app, has an nc- 17 rating after some x-rated videoed popped up on the site, one hard-core video becaming quote, an editor's pick that a lot of folks saw, women's advocate, penny young natural, and greg sang to sort it out, how did they get on twitter. >> they got on vine, a separate app that was made by twitter, sort of like a video version of twitter, instead of 140 characters of text it is 6 seconds of video they would let people share videos, some were of adult nature. and by human error, one, one dull video was futured as a quote, unquote editor's pick, that was viewed by a lot of people. >> penny, how do you find out

about this? >> well there is news stories about it. this is a great concern, parents all over, and concerned women for american, represents half a million women are trying to protect our children, you know we need companies like twitter, and their app vine to be responsible corporate citizens and take the attract step to police itself. we're trying as parents to protect our kids, we need their help. facebook has done a great job with this, they are goal standard -- gold standard we'd like to see them step up instead of small tweaks here and there. david: greg, is there a way that twitter could learn from what facebook did successfully, at least according to penny? >> yeah, i say, twitter has done the responsible thing thus far in you know both putting in measures in place to avoid mistakes in the future, as well

as putting on a responsible nc- 17 rating they did. david: by the way, how did one -- one of those videos become editor's pick? >> i i wasn't there, but, apparently it was human error, instead of deleting it, they put it as editor's pick. david: penny? >> the steps they have taken with the nc-17 is a pop up box that kid clicks on to say, yes i'm over 17, 58% of 12-year-olds have cell phones today, and 15% of kids between ages of 12-16 have been involved in sexting that is still, nude pictures, this is sexting on special steroid. david: why give a cell phone to a kid who may could second

sexting. >> i agree. but, these companies are making money off the kids, should they also have some responsibility in this? my point is, i would be worried if i were vine about liabilitiy, there is a problem in this country with kids not having enough parental oversight, not being parents, and saying i own that phone, i hone the house, i own the computer, and electricity, it is mine, i can look at it, i need your pass code, parents are the first line of defense, it is our responsibility. david: our next segment we'll talk about the question of suing on the internet, apeared on internet but greg, do you think that we may see a lawsuit result from this? >> um, it is really anybody's guess, i would say that -- but the to penney's point, it is a shared responsibility, so, you

know twitter has taken from steps, they have owned up to the error. >> not enough. >> this is also a partner's responsibility, if your child is you know misrepresenting their age, and saying they are 17 or 18, when they are 13. david: penny, you say they should be doing more, what more would you like them to do? >> i would like to see, they have -- basically you know wash their hands of this by giving an nc- 17, but facebook goes on and proactively looks for postings that are threats, that are cyberbullying, pornograph, they are trying to keep a clean house, facebook has not made vine a -- of theirs i think this might have part of it, parents are trying hard, we have to do

more but we need help from the companies. david: penny and greg, thank you so much for coming? >> twitters are not only one with porn problems, if you thought this go daddy super bowl comcommercial of gross, wait unl you hear from one perverted site could make go daddy kiss billions go good-bye.

david: go daddy.com could go to court for a mother of a lawsuit, 17 women are seeing it for hosting so-called revenge port site, calle call texxan.com.

they post porn of x-girlfriends. first to you, have courts determined that web hosts are not responsible for what some idiot puts up? >> they have. let me start by saying morale of the story is very simple. if you don't want naked pictures of yourself on-line or to the public, don't take the pictures, but you are right. i sympathize with the women, and perhaps web site did go a little bit too far in publishing their names and addresses, but go daddy and this web site did something illegal. david: kelly, what case do the ladies have? how did they bridge th bring the case. >> on a case by case analysis, if you don't like the law those are your options, here, the fact they complained about content,

go daddy did not pull it down, they had a reasonable particular of pry -- expectation of privacy, remember the reporter, someone took a picture of her through a peep hole. david: understood, the question is whether go daddy is liable. do you still they should be lyle foliable. >> they are not. >> if they posted child porn, if they post something that defensive and illegal, do they have accountability, to say, you don't like it, sorry your privacy was violated. sorry your address is now locate able for a crime, you and are -- a creep, you are naked. naked. >> i have to give kelly a point, god forbid, if this of child porn, some legislator would be looking for blood, they might

turn on go daddy, they might have an easier case then? >> right, and key word you use is if, david, courts have been clear, under communications of decency act, web sites and deb hosts are not liable for consteps posted by third parties, this is a first amendment issue, freedom of speech would be stifled if we required web sites to be liable. and look at go daddy for example, they host 50 million web sites, it would be nearly impossible for them to monitor all of the millions of millions of postings. david: by the way, the site does appear site has been closed. we put in calls to go daddy, but, this is the question, if the community, the greater community, all of us who use the internet, does it harm more by closing down entire networks or by the junk put up on the

network? which hurts community, us, more? >> i think what hurts community more is the sites are accessible to go to your last segment by children. there are people that are injured by this. david: hold on, let me put a fine point on it you say, it is better that we close down go daddy than take the risk of somebody bad put up? >> no, absolutely not, i do not think we should close go dad i. david: that might happen if they are sued. >> it is not going to happen, you said site not the host provider, think about the valuable thing. >> the host provide ser being provider is being sued. >> they are the deep pockets. >> but not only are they deep pockets, they are profiting, how you can make money, and say hands off, sorry we made money, but you your own. david: last word.

we started with you, we end can kelly thank you. >> thank you. david: health care law is not just effecting your medical bill, it about to hit your grocery bill as well, we'll exchange, coming next.

david: the health care law making you sick over yourgrocery bill, a new rule requiring markets to label things like salad bars and buffetts, it will cost a billion bucks just in the first year, and consumers will be forced to eat the difference, lindsay it is going to call on us? >> it is about the government

extending their hand. further into the average emergency's pocket. -- american's pocket, this is is a sector we can barely eke out positive profit margins, they will pass that on to consumers, right now we're still talking about 8% unemployment, they cannot afford additional burdens. david: profit margins of the eateries is so thin, because consumer prices have gone up so much, how can they afford this. >> this argument is so reminiscent of what we her beforheardbefore, we told food s they have to label their food. >> they passed it on to us. that is why the prices are going up. >> you don't' to know what is in

your food? >> you go to the corner you buy a big thing of soup. you don't want to know what is in there? you don't think it's time what they put into this. >> it is to up the individual consumer, to decide whether they want to go to that deli, if they want to pay the high are price. david: we know that there is going to be a price to be paid, for this decision. usually that price is passed on us. >> right, this is big brother at its worst, this is obamacare, this is where americans hate obamacare, they are finding out what it is doing, a time that americans condition afford to go out -- can't afford to go to dinner, they go to a store to get a salad, they know what is in a salad, they don't need obamacare to tell us, but now they can't because the cost will be passed on to us, it will be hurt the business, i am -- i am

flabbergasted. people get this, people understand this too, that is something most thing that obamacare, flies over people's head they will understand this this one, i can't get my blueberry muffin any more. david: this was enforced in 211 211 -- 2011 in an economist order, -- with an executive order, it did not even go through congress. >> it is go the government extending their hand further into american daily lives, making them pay more and more, giving the regulation whatever the government deems is appropriate this is just, -- owner us burden -- onerous burden to consumers. >> rick, you are not a fan of the nanny state, is know there a little bit of that in this. >> nothing is being enforced, i bought a salad last night with no label.

david: they don't come into action until 2014. >> this is still proposed. david: just you wait henry higgins. >> i'm not a big fan of the nanny state, but every single thing i buy at the market today, am a diabetic, i care ha is in food, i read the label, i can remember, despite the fact that i'm 23 years old, when you could not so the label. david: that is in there why do we need this new bit of legislation, why do we need more? you go to a open bar at the super market, sue foo you see fd that looks crusty, if you buy that, you take your life in your own hand. >> i can blame oklahom oak -- oe now, i think that americans can figure out on their own when to eat. we know what is in a salad bar, we don't need the government to

tell us, we have a lot of information. this is ridiculous. >> rick, -- david: nothing is going to protect you from eating what you see. >> it is good to make a decision. >> we make the decisions. >> you do, you see what is in the label, it costs you more though. >> our decisions are being limited more and more, and more and more by all of these executive orders that are thrown into this. >> it comes down to a plan sheet issue, if i am forced to pay more to get the same salad, i have less income lift over for other goods and services. david: the point is, this was an executive order, unlike what nancy pelosi we could -- hold on, we couldn't read this before they passed it.